Thread: Do you trade for money or emotional satisfaction?

DO YOU WANT TO BE ENTERTAINED OR RICH?…IT’S YOUR CHOICE

I came across this excellent chart the other day. It shows those times in history when the S&P 500 doubled over a ten year period and the trajectory that this doubling took.

Please see here for a relevant chart: https://www.tradinggame.com.au/want-...d-rich-choice/

Much commentary that followed on twitter related to the steady low volatility climb that characterised the latest run and how boring this was. One of the interesting thing about markets and money in general is that people betray their true desires and personality.

Markets are the true window into the soul and in this instance what traders were actually saying is that they wanted to be entertained and not rich. The constant current moaning about the lack of volatility is little more than the plaintiff cries of children who bedevil their parents every school holidays with cries of …I’m bored.

This lay observation tallies with what others have found. The seminal work in this field of trader immaturity is An Analysis of the Profiles and Motivations of Habitual Commodity Speculators by W.B. Canoles, S.R. Thompson, S.H. Irwin, and V.G. France. I have summarised their findings below and have added my own emphasis.

“The typical trader assumes a good deal of risk in most phases of his life. He is both an aggressive investor and an active gambler.

[He] does not consider preservation of capital to be a very high trading priority.

As a result, he rarely uses stop loss orders. He wins more frequently than he loses (over 51% of the time) but is an overall net loser in dollar terms. In spite of recurring trading losses, he has never made any substantial change in his basic trading style.

To this trader, whether he won or lost on a particular trade is more important than the size of the win or loss. Thus he consistently cuts his profits short while letting his losses run.

He also worries more about missing a move in the market by being on the sidelines than about losing by being on the wrong side of a market move; i.e., being in the action is more important than the financial consequences.

Participating brokers confirmed that for the majority of the speculators studied, the primary motivation for continuous trading is the recreational utility derived largely from having a market position.

Numerous indications in our survey indicate that they are not trading solely or even primarily for profit, but may be maximizing excitement or the number of winning trades.”

So we come back to the original question. Do you want to rich or be entertained as the choice is entirely yours.

Author: Chris Tate
Article reproduced with kind permission of Tradinggame.com.au.

The article is concluded by the quotes below:


“It's in your best interest to focus on building your trading skills rather than on achieving a huge profit every month.” – Joe Ross

“No matter how good you may think you are, nobody is bigger than the market and it will beat you to your knees if you don't treat it with the respect it deserves.” - Adrian Alberts

“Trading does not have to be very difficult — what can be difficult is finding the right path early on and properly understanding the major impact of your mental state on your trading results” - Gabriel Grammatidis



www.tallinex.com wants you to be a successful trader


Trading realities: http://www.advfnbooks.com/books/unlo...ial/index.html

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I am a student and I am trading in the forex market with a view to some money in my pocket so that I can remain self-dependent. And yes; trading is somehow related to my emotions also. Whenever I win a trade and earn money; I receive immense happiness. Obviously being a part term trader I require a reliable platform that will ensure me lower transaction costs and timely trade execution always so that I can efficiently handle my money and time. And my broker AAFX is ensuring me lowest zero spread; good leverage of 1:2000; reliable MT4 platform without re-quote and slippage issue and timely and fastest trade executions with 24 hour customer support.

I do forex trading just for the money. I have no urgies for my emtotional satisfactions. I just want to trade and make big profits. People who try to soothe their ego and emtions tend to become the biggest losers in forex trading.

but inside the forex it will never have an instant, so traders should be able to better and can be more leverage in improving trading skills in order to survive and manage funds and risks with the maximum

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I think every trader has the opportunity to make a profit, because that is the trader should be able to continue to improve existing trading skills in order to become more maximal again in survival and generate profits in accordance with expectations.

To earn good money I really join to Forex market and I have small balance so I choose the scalping trading technique with Forex4you the expert trading broker. In this world market place I have enough opportunity from my broker, those are- narrow trading spread from 0 pips, high leverage 1:1000, timely and orderly well time trade execution service, easy withdraw and no minimum deposit, wide range of deposit bonus, low transaction cost etc.

but in forex it will never be instant, so traders must be able to run existing trading activities properly to be able to manage the funds and risks that exist and can generate profits.

I must admit that I am trading because I love trading. And the fact that I can earn some extra money makes me love forex even more. Of course, success in Forex does not come overnight. It takes some time to learn how to profit from price volatility